Two of the most prominent providers of voice data and mobile satellite services, Inmarsat and Globalstar, Inc. (NYSEMKT:GSAT), have revealed that they are partnering in efforts to expand global reach. The partnership will involve the cross-selling of their various services and products. This will offer extra service options to meet the needs of an increasingly diverse customer base across the globe.
Currently, the two are engaged in crafting an agreement that will allow them to embark on the partnership that will benefit both. Crafting of the agreement is expected to be complete in the next few weeks.
“This strategic partnership with Inmarsat will allow us to enhance our product offerings and provide transformative communications services to more people worldwide,” Globalstar’s Chairman and CEO, Jay Monroe, said while expressing optimism concerning what the future portended with the mutually beneficial partnership in place.
More variety, wider reach
Inmarsat’s president, Paul Gudonis, said that customers of both firms would stand to benefit since they would now have additional service options and a wider variety of satellite products to choose from regardless of which part of the world they are located in.
With both Inmarsat and Globalstar owning and operating satellite constellations, the difference comes in the kind of satellite in orbit. Inmarsat uses geostationary satellites (GEO) while Globalstar uses a new satellite technology known as low-earth orbiting type (LEO). The LEO satellites were unveiled in 2013. Global Xpress is an example of Globalstar’s satellite constellation that offers mobile broadband at high speed using the GEO technology. This service was commercially unveiled in late 2015.
Diverse client base
Both Globalstar and Inmarsat draw clients from a wide range of fields including the mining sectors of oil and gas, government, non-profit organizations working in remote areas to provide emergency relief, the marine industry and even the outdoor recreation sector. And with the growing concept of big data, both firms provide data solutions that are ideal for applications geared towards IoT, personal and asset tracking and data monitoring.
In the after-hours trading session on Wednesday, shares of Globalstar Inc edged up by 0.71% to close the day at $1.41 a share.